US Postal Service employees sort distributions for distribution at the start of the December 3rd, 2024 Holiday Mail Rush. Photo: VCG
Less than 24 hours later, the US Postal Service (USPS) staged its policy “U-turn.” We suddenly stopped accepting packages from mainland China and Hong Kong, but later announced a hurry to repair the parcel service. This dramatic turnaround unveils a new 10% tariff on imports from China, halting the obligation exemption policy for less value packages, and against the US background that prevented them from attracting international attention It was brought. USPS spokespersons have announced that to implement the “efficient collection mechanism” of new tariffs, customs and borders to implement the “efficient collection mechanism” to ensure minimal disruption in packaging. He said he is working with other departments such as protection. The statement revealed contradictions and confusion within the US stance, while also highlighting the deep interconnections and inherent resilience of China-US economic and trade ties.
The policy of temporarily suspending acceptance of packages was in effect for a short period of time, but the disruption that had arisen in the supply chain over those hours was very realistic. DHL, a global logistics company, said they are working to limit the negative impact on them and consumers and avoid disruption in the chain’s supply chain. FedEx has also suspended its money-back guarantee for US transport. Additionally, Martin Palmer, co-founder of Hurricane Commerce, a cross-border e-commerce company, has openly admitted that he is “running around like a headless chicken.” Many US retailers and manufacturers relying on imports from China have faced with both product shortages and price hikes and have been forced to urgently change their procurement and sales strategies. This will likely surprise American policymakers and serve as a reminder or lesson for them.
This farce highlights the arbitrariness and confusion in Washington’s policy making. But it also reflects deep social ties and intertwined interests between China and the United States. According to US customs, around 4 million subdivisions under $800 are shipped from China to the US every day. From an absolute number perspective, this may seem like a “major” part of the vast trade between China and the US, but most of these items are made from low-cost clothing, toys, etc. Electronic devices and essential manufacturing components such as screws and valve cores – as a daily necessity for households and businesses – can quickly ripple through the structure of American society. This immediate impact on people’s livelihoods could be the main reason behind a sudden policy reversal.
It should be noted that USPS policy reversal is not a fundamental fix for errors, but a technical adjustment in policy implementation. Underlying these changes are preconceived and prejudices about China, which represent the politicization of US trade policy. Small and medium-sized American businesses and the public are becoming the biggest victims of this pathological mindset and paranoid policy. The easing of e-commerce and logistics platforms noted that while consumers could bear price hikes, related businesses could also face the risk of declining competitiveness. “We’re not just talking about $5 dresses and other types of clothing,” said John Pickel, senior director of international supply chain policy at the National Council of Foreign Trade. And it really drives the US economy. ”
The trade and trade link between China and the US is not only reflected in the flow of goods, but is also rooted in the complementarity of the industrial structures of both countries. China’s platforms like Shein and Temu, meeting the personalized needs of American consumers through a “small orders and fast response” model or to maintain Amazon’s price competitiveness Third-party sellers relying on these developments are not a coincidence. The efficiency and innovation capabilities of Chinese manufacturing provide a wealth of choice for the US retail sector, while the purchasing power of the US market puts momentum into transforming and upgrading Chinese companies. This arises from optimized resource allocation within the global division of labor where both China and the US benefit.
Fast delivery and low prices are the inherent benefits of cross-border e-commerce and are key drivers of the booming global digital trade. China’s cross-border logistics platform is heading towards “72-hour global delivery,” reducing the distance between producers in South China’s Guangdong province and consumers in New York for just three business days. This efficiency revolution has, to some extent, redefined the nature of international trade. Regardless of how national policies are coordinated, it is difficult to erase the inherent benefits of cross-border e-commerce, and it is impossible to change the comprehensive trends in digital development in international trade. is. Adapting to this trend and optimizing processes with a more open mindset is a wise choice for regulators of different countries. If they simply build trade barriers, they are bound to face a dilemma due to resistance from all sides.
Currently, global trade development trends have evolved from traditional trade in goods, value chain trade and services to digital trade, with major economies around the world increasing investment in the field of digital trade . As the world’s two largest economies, China and the US are responsible for working together to carry out digital transactions into new engines for shared development. USPS’ “U-turn drama” acts as a mirror, reflecting the absurdity and limitations of unilateral unilateralism. Economic and trade relations between China and the United States cannot be cut off by mere executive orders. Consumers on both sides of the Pacific can only share the benefits of trade through joint cooperation.
